""This position now applied by the Group going forward has also resulted in a partnership signed in Q2 FY2025-26 not being recognized in IFRS15 revenues," the company said. "The above results in the Company not complying with its leverage covenant ratio under certain existing financing agreements at September 30, 2025. However, this is being addressed by the aforementioned actions relating to the concerned debt instruments.""
"And while the accounting snag led to the week-long delay, the French company said that its deal with Tencent is set to close in "the coming days," with the imminent €1.16 billion ($1.36 billion) investment expected to help the company pay off outstanding debt. Once finalized, the partnership will also "enable the acceleration" of Vantage Studios, the new Ubisoft subsidiary in which Tencent will own a 25 percent stake. The new studio will be responsible for Ubisoft's three biggest IPs: Assassin's Creed, Far Cry and Rainbow Six."
An accounting issue tied to a near-finalized transaction with Tencent forced Ubisoft to restate FY2024-25 accounts for partnership-attributed revenue. The new accounting position caused a Q2 FY2025-26 partnership to be excluded from IFRS15 revenues, producing noncompliance with a leverage covenant ratio at September 30, 2025; remedies are being implemented via actions on the concerned debt instruments. Trading on Euronext was paused and a request to resume has been made. A €1.16 billion Tencent investment is expected to close in the coming days to help repay debt and accelerate Vantage Studios, where Tencent will own 25% and which will handle Assassin's Creed, Far Cry and Rainbow Six. Net bookings reached €491 million, a 39% year-on-year increase, with Assassin's Creed Shadows overperforming.
Read at Engadget
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